Forbes Africa: Egypt's Economic Leap Powered By Reform, Strategic Investment
Taarek Refaat
Forbes Africa magazine confirmed that the Egyptian economy is experiencing accelerated growth, with GDP expected to grow by 4.7% for the period 2025-2026, exceeding the IMF's forecast of 4.1%.
The magazine, which covers economic developments around the world, said in a report today that this growth is due to bold economic reforms that are attracting investment in key industrial and infrastructure sectors.
The report considered that historic projects and international partnerships position Egypt as a central player in Africa's development, with a population of 115 million, 60% of whom are under the age of 30. It noted that Egypt benefits from its skilled workforce, its prime location, and its resources, while aiming for a 15% increase in foreign direct investment for 2024-2025.
According to the report, the country's Vision 2030 is driving stronger-than-expected growth, enhancing expansion this year and beyond, strategic investments and reforms, mega infrastructure projects, and sustainability are shaping Egypt into a global hub for trade and innovation.
According to the report, every policy measure and reform is linked to Vision 2030, pointing to a coherent approach to spending and government support to attract investment.
Forbes Africa noted in its report that the construction sector, which is growing at an annual rate of 7.4%, is pivotal to Egypt's transformation. Vision 2030 has spurred numerous ambitious projects, including the New Alamein City, a high-speed train project, vital seaport infrastructure, the New Administrative Capital, which houses several government ministries, and the iconic Cairo Tower, which stands nearly 400 meters tall.
"Egypt has the sixth-largest oil reserves in Africa and is already self-sufficient in traditional power generation, while boasting a world-class oil refining infrastructure that processes 38 million tons annually," Forbes Africa said.
It added that Egypt is set to expand its renewable capacity to 45,000 megawatts from projects under construction in upcoming years. The country is prioritizing wind, solar, and green hydrogen, aiming for 42% of its power from renewables by 2030.
It pointed out that "The Egyptian industrial fabric is undergoing major expansion, targeting to triple exports over the next five years. Industries such as textiles, chemicals, machinery, and food products are conquering markets across Europe, Africa, and the MENA region."
"In 2024, Egypt attracted 15.7 million tourists, breaking its own record for the second consecutive year. The coral-garnished Red Sea, Sharm El Sheikh, Sahl Hasheesh, and Hurghada are becoming global hotspots where splendid coastal resorts blend top-class leisure, entertainment and retail," Forbes Africa concluded.
read more
CBE: Deposits in Local Currency Hit EGP 5.25 Trillion
Morocco Plans to Spend $1 Billion to Mitigate Drought Effect
Gov't Approves Final Version of State Ownership Policy Document
Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister
Qatar Agrees to Supply Germany with LNG for 15 Years
Business
Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves
Business
Suez Canal Records $704 Million, Historically Highest Monthly Revenue
Business
Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday
Business
Wheat delivery season commences on April 15
News
Egypt confirms denial of airspace access to US B-52 bombers
News
Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia
News
Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content
Lifestyle
Pistachio and Raspberry Cheesecake Domes Recipe
Arts & Culture
Nicole Kidman and Keith Urban's $4.7M LA Home Burglarized
Videos & Features
Bouchra Dahlab Crowned Miss Arab World 2025 .. Reem Ganzoury Wins Miss Arab Africa Title (VIDEO)
News
Israeli PM Diagnosed with Stage 3 Prostate Cancer
News
Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies
Sports
Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers
Arts & Culture
New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
See - Sada Elbalad
2 hours ago
- See - Sada Elbalad
Cyberattack Hits Major Iranian Banks
Taarek Refaat Two of Iran's largest financial institutions Bank Sepah and Bank Pasargad were hit by a cyberattack that disrupted their operations, according to government spokeswoman Fatemeh Mohajerani. In a statement on Wednesday, Mohajerani confirmed the cyber intrusion and acknowledged resulting issues, including a sharp rise in demand for cash. 'We have witnessed an increase in demand for banknotes, and this problem in providing cash will be resolved soon,' she said. The attack also affected internet connectivity, as authorities implemented bandwidth restrictions to mitigate further breaches. 'The internet disruption is due to the occasional need to reduce network speed to counter cyberattacks,' Mohajerani explained. While Iran maintains a so-called 'national internet' infrastructure, Mohajerani emphasized that no shift to the closed domestic network would occur unless the situation escalates. 'As long as there is a non-emergency situation, the transition to the national internet will not take place,' she stated. The source of the attack has not been publicly disclosed, and both banks have yet to comment directly on the scope of the disruption. The incident comes amid heightened geopolitical tensions and follows a recent escalation in cyber and physical attacks involving Iranian infrastructure. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream News Shell Unveils Cost-Cutting, LNG Growth Plan Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean News 3 Killed in Shooting Attack in Thailand
See - Sada Elbalad
2 hours ago
- See - Sada Elbalad
Strait of Hormuz Vessel Insurance Rates Jump 60% over Rising Geopolitical Risks
Taarek Refaat Insurance premiums for vessels transiting the Strait of Hormuz have surged more than 60% in recent days, as rising geopolitical tensions between Iran and Israel cast a shadow over one of the world's most vital oil shipping lanes. According to a report by the Financial Times, hull and machinery insurance—which covers physical damage to ships—has jumped from 0.125% to around 0.2% of a vessel's value since the start of the conflict. For a ship valued at $100 million, this equates to a rise from $125,000 to $200,000 in insurance costs per passage, based on data from Marsh McLennan, the world's largest insurance brokerage. The Strait of Hormuz, a narrow maritime corridor between Iran and Oman, is a strategic chokepoint through which about a fifth of global oil supply flows. The increase in insurance premiums underscores mounting fears of disruption, despite no direct attacks on commercial vessels being reported so far in the Gulf. 'We haven't seen a missile fired at a ship in the Arabian Gulf yet, so this is a signal from the market of growing concern,' said Marcus Baker, global head of marine and cargo insurance at Marsh McLennan. 'Prices could rise further.' Concerns are being driven not only by the threat of missile strikes but also by electronic interference, Houthi rebel activity, and the potential for direct U.S. or Israeli military involvement in the region. On Monday, two oil tankers collided near the Strait, and one was found to be transmitting unusual location signals, fueling suspicions of GPS spoofing or jamming. Insurers are increasingly wary of the Houthis, a Yemeni militant group backed by Iran, possibly expanding their attacks to target U.S., U.K., and Israeli-flagged vessels more aggressively. While some insurance providers may consider withdrawing coverage, others are prepared to assume the risk, Baker noted. 'War itself, as an insurance product, tends to be… lose everything or make a fortune. Many insurers have made significant fortunes willing to take the risk.' Although cargo insurance—which covers goods like crude oil—has yet to rise as sharply, brokers expect those rates to climb soon as well, especially if shipping disruptions continue or the conflict escalates. In parallel, analysts at Nomura are warning that ongoing trade tensions, especially between the U.S. and Asian economies, will keep tariffs elevated, particularly in the context of U.S.-China rivalry, further complicating the global trade landscape. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream News Shell Unveils Cost-Cutting, LNG Growth Plan Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean News 3 Killed in Shooting Attack in Thailand
Mada
2 hours ago
- Mada
House approves tax exemptions for UAE sovereign fund
To pave the way for more Emirati investments and secure the capital return on those already made in Egypt, the House of Representatives approved on Sunday a supplementary protocol to the Egyptian-United Arab Emirates tax agreement, granting the Emirati sovereign wealth fund a tax exemption in Egypt. The annex, issued by presidential decree earlier this year, recognizes Egypt's Sovereign Fund and UAE's Abu Dhabi Development Holding Company (ADQ) as 'government institutions' and consequently allows both funds to benefit 'from the tax exemptions stipulated in the agreement.' Upon their approved recognition in the agreement as government bodies, both funds are subject to Article 24, which grants tax exemptions on income generated by the government as well as its affiliated bodies, according to a joint report issued by the House planning and budgeting and Arab affairs committees and reviewed by Mada Masr. The agreement with the UAE, aimed at enhancing investment and trade relations between both countries, was initially approved by President Abdel Fattah al-Sisi in November 2019, under the Presidential Decree 558 of 2020. Emirati investments are crucial for Egypt at a time when the country's economy is deeply affected by Israel's aggression on Gaza and more recent attacks on Iran. Last year alone, ADQ, the Gulf country's largest sovereign fund, invested US$35 billion through the Ras al-Hikma development project in the North Coast. Half of the mega deal's proceeds were allocated at the time to easing the country's growing public debt. ADQ also acquired stakes in three state-owned petroleum companies for $800 million in November last year. Under Article 24's second section, the term 'government' includes 'the government, its agencies and institutions […] as well as any other institution or body mutually agreed upon from time to time by the governments of the two contracting states.' In the past, Egypt signed 60 similar agreements with other countries, some dating as far back as the 1970s, a Finance Ministry official told Mada Masr on condition of anonymity. These agreements are periodically reviewed and re-negotiated by both parties, the official said. When amendments are limited to one or two provisions, they said, they are issued in the form of a protocol and appended to the original agreement. In this case, the protocol was necessary because the original tax agreement was finalized in 2017, before either the Egyptian or Emirati sovereign wealth funds were established. Agreements to avoid double taxation typically require that the benefitting entities be explicitly named. According to the official, the supplementary protocol was added after it became clear during ADQ's financial dealings that the fund was not listed among the beneficiaries of the agreement, as it had not been named or specified in the original text. The exemptions outlined in Article 24 include taxes on three types of income: dividends, capital gain, and interest, a source in the House Planning and Budgeting Committee told Mada Masr. The interest exemption applies to all forms of government lending instruments, such as bonds, sukuks and deposits, among others. Upon the maturity of the financial instrument, the lender or investor receives the principal amount along with interest — or what is considered profit — from which the Finance Ministry deducts a 20 percent tax, as stipulated in the Income Tax Law, which applies to both Egyptians and non-Egyptians. While the government continues to offer incentives, including tax exemptions, to encourage Emirati investment in the domestic economy, it has been less forthcoming with other international entities. In November 2023, Euroclear, a platform for settling securities transactions that Egypt had hoped to join, requested a tax exemption on treasury bills and bonds as a condition for granting access to the government's debt market. The Egyptian government has yet to respond to the request.
